One of the leading news stories of 2017 was the steady string of claims alleging sexual assault, harassment, and other misconduct by prominent actors, media personalities, politicians, and corporate leaders. The phenomenon has touched the business of licensing and brand extension as well, as accused celebrities have seen deals for consumer products tied to their names or brands end:
- Diageo discontinued its Hilhaven Lodge whiskey line, produced under a licensing and marketing services agreement with film producer/director Brett Ratner. The products launched in 2016. Warner Bros. also severed ties with Ratner, who produced and directed a number of top-grossing movies for the studio.
- Walmart and Target announced that they would stop selling sauces and other products associated with chef Mario Batali. Batali was also let go from the TV show The Chew and from his food hall business, Eataly, which also took his brand off of its shelves.
- JCPenney dropped its clothing line created in partnership with music producer Russell Simmons. The exclusive merchandise, under the ArgyleCulture brand, debuted in September 2016 and was reportedly sold in less than 10% of JCPenney store locations as of December.
Celebrities’ product lines can often come back after taking a hit from a controversy or scandal, typically at lower levels (sometimes significantly so) than before the incident. Tiger Woods (cheating and substance abuse), Martha Stewart (insider trading and a stay in jail), Paula Deen (racist language), and Michael Vick (illegal gambling and dog fighting) all continue to have at least some products on the market, to varying degrees.
It remains to be seen how the sexual misconduct allegations will affect the long-term licensing activities of those at the center of them. Collectively this behavior represents a seemingly pervasive form of wrongdoing that has just recently come to light (in a widespread and public way, at any rate). The allegations have also created a backlash that could end up being game-changing on a societal level. But whatever happens on a long-term basis, the short-term ramifications are clear.
On a separate note, if you missed our review of some of the key licensing trends of 2017, published in late December, you can read it here.
Comments are closed.